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A firearm bill of sale is a document that records the sale details of a handgun, rifle, or shotgun between a private buyer and seller, ensuring legal protection for both parties. The video outlines key information about these forms and where to obtain a free official template. It emphasizes the importance of understanding that firearm sale processes vary by state due to differing gun laws. Regardless of location, there are six recommended steps to follow: research state-specific gun laws and sale requirements, choose a trustworthy buyer, conduct a background check (if required), negotiate sale terms, and create a bill of sale.